Polymetals Resources Ltd announced yesterday that it had entered into an agreement with Orana Minerals to purchase the Endeavor Mine, 40km north west of Cobar.
Polymetals advises the completion of the sale remains subject to the satisfaction of several conditions, including their shareholder approval and relevant independent reports.
Endeavor was first discovered in 1974 with mining and processing operations commencing in 1982.
A total of 32.2 million tonnes of ore was processed before the mine went into care and maintenance mode in December 2019.
Polymetals’ purchase includes: five mining leases, three exploration licences and a Western Lands pastoral lease; the fully equipped and operationally ready underground mine; a mineral processing plant; surface infrastructure including offices, workshops, labs, store, parts and spares; light vehicles, heavy machinery and mobile equipment; 42 houses, four blocks of units and six blocks of vacant land in Cobar; and statutory operational approvals which also includes increased tailings storage capacity.
As part of the acquisition arrangements, Polymetals will replace Environmental Rehabilitation Bonds of $27.65 million before April next year.
Polymetals Executive Chairman, Dave Sproule said the acquisition of the Endeavor Project advances the company’s business model and strategic objectives.
“The acquisition of the Endeavor Project is a major milestone in the growth of Polymetals, aligning the company to its ambitions to build on near mine and regional exploration success at Endeavor to potentially become a base and precious metals producer in Australia.
“We are confident that Polymetals can apply good science and its deep operational experience to capitalise on the numerous opportunities that have been identified across the regional landholding and mining assets being acquired,” Mr Sproule said.
